VeChain was first founded in the year of 2015 by the former Chief Information Officer of Louis Vuitton, China, Sunny Lu. When it was first launched, VeChain was just a subsidiary of Bitse, one of China’s biggest blockchain enterprises.
At that time, the VeChain coin, which was known as VEN, was first running on the Ethereum blockchain as an ECR-20 token. Later on, in the year of 2018, VeChain rebranded itself to transition to its own blockchain, the VeChain Thor blockchain.
The Technology behind VeChain
When VeChain was first established, its intention was to create a bridge between business enterprises and blockchains. Its main purpose was to serve businesses throughout their day-to-day processes and to enhance their supply chain management through the use of Distributed Ledger Technologies (DLTs).
The VeChain Thor blockchain uses a Proof-of-Authority consensus mechanism. This mechanism manages the verification of transactions between users and adds them to VeChain’s public ledger to be viewed by everybody. In addition, the PoA mechanism ensures the execution of a large number of transactions in a cost-efficient and rapid manner. Moreover, PoA requires less energy consumption than other consensus mechanisms, making the VeChain Thor blockchain more eco-friendly than its competitors.
For the system to run smoothly, developers at VeChain have created two cryptocurrencies. The first VeChain coin, known as VET, is the primary token used by the VeChain Thor blockchain. Its main purpose is to carry value, or leverage for the user to have over the platform. VET is publicly available for anyone to invest in. Whereas the second VeChain coin, known as VTHO, has the sole purpose of powering transactions. In other words, its main goal is to fund gas fees when conducting smart contract executions and programming.
What Makes Vechain Unique?
To create an efficient platform, the developers behind VeChain had no interest in creating a fully decentralized blockchain. Rather, their mission was to create a blockchain that has enhanced features from both, decentralized financing and centralized financing. This method grants the users of the platform transparent information flow and high-speed transactions.
In addition to that, businesses that use VeChain benefit to a great extent from the features it provides because it can process a huge amount of data. For example, VeChain helps organizations by giving them the satisfaction of being able to track and verify every product within the supply chain movement. In return, this creates trust within the organization. Being able to track every product item, guarantees the fact that the product they will receive will be genuine rather than counterfeit. An example of a business enterprise that benefits greatly from the VeChain protocol is BMW.
“Blockchain technology itself is not the end-all solution,” explained Dr. Andre Luckow, Head of Distributed Ledger and Emerging Technologies at the BMW Group. “What it does is give us the technical foundation we need to create helpful and effective solutions.”
With its partnership with VeChain, they were able to establish an auto-security decentralized application (dApp) within the blockchain called VerifyCar. This blockchain-powered app records every detail the BMW car has endured such as its mileage, repairs, and check-ups. In return, this makes it hard for the car to be prone to forgery if ever resold.
VeChain Coin Price History
The VeChain coin, VET, emerged into the crypto marketplace on August 4th of the year 2018 with a price of $0.0153. By the end of that same year, the price of the VeChain coin decreased to the value of $0.0042. For the first two years since VET’s launch, the price of the altcoin did not endure that much of an increase.
By August 5th of the year 2020, the price of the VeChain coin was recorded at $0.0187. So exactly two years since its launch, the VeChain coin recorded a percentage return of 22.22%.
Nevertheless, within the past year alone the VeChain coin recorded a percentage return of 683.55%. A major increase in its percentage compared to its first two years on the market. The Vechain coin recorded its all-time high price at a value of $0.28 on April 17th, 2021. Although, since then, VET endured a decrease in its value with a percentage loss of -53.57%. Making the VET coin be priced at a value of $0.13 in today’s crypto marketplace.
VeChain Coin Price Prediction 2022
The VeChain coin price is forecasted to reach $0.1672 within the first month of the new year. With the expected minimum price of the coin being $0.1421 and the maximum price is $0.2090.
By June of the year 2022, it is expected that the VeChain coin will be held at an average price of $0.1696. The maximum price it could reach would be $0.2121, and the minimum price it’s predicted to reach is $0.1442.
Forecasts have shown that by the end of the year 2022, the VeChain coin will have an average cost of $0.1698. The lowest value it could hit for the said month would be $0.1443, and the highest value would be $0.2123.
Per the predictions made above, the VeChain coin is expected to have a percentage loss of -1.53% during the entirety of the year 2022, based on its average prices.
Although the VeChain is considered a major development towards the use of blockchains within business organizations and has made it significantly easier to track data within the enterprise. Nonetheless, its native valued token, VET, will not endure much of a profit increase compared to other cryptocurrencies.
Since the crypto market endures so much fluctuation daily, it’s unclear whether the forecasts made above would be 100% true to its price. Therefore, to ensure the safety of your assets, it’s best to do your own analysis of the cryptocurrency of your choice.
Sally is a student of International Business Management and is interested in topics related to blockchain technology. She is an author for gBlogo’s “Crypto World” column and provides insight on topics related to cryptocurrencies and NFTs.